San Fernando Valley housing inventory jumps 50 percent

The number of homes for sale soared 50 percent in the San Fernando Valley during March, but sales remained soft as prices crested the half-million-dollar mark, a trade association said Monday.

At the end of March, there were 1,520 previously owned houses and condos listed for sale, up from 1,015 a year earlier, said the Van Nuys-based Southland Regional Association of Realtors.

That is a 2.8-month supply at the current sales pace but about half the number considered to be a balanced market, the group said. A year ago at this time, there was a 1.5-month supply. Sales typically increase between February and March as the market shifts into the spring-summer buying season.

The trend is down from 2013 but still far above February 2014. Home sales fell 17 percent in March, to 414 properties from 498 a year ago, while still showing an increase of 29 percent from February’s 320.

Sales have been dipping due to rising prices and the absence of the foreclosed properties and short-sale deals that had been driving the market.

“Residential real estate has always had up and down cycles,” association president Roger Hance said in a statement. “But this time the recovery is taking longer because the up was so high for so long and the down was so profound.”

Last month, the median price increased 20 percent to $515,000, from $430,000 a year ago — that’s up $40,000 from February. The price had been in the same relative range since last May.

The increase reflects sales of more expensive homes and a lack of distressed properties on the market. And foreclosures have pretty much vanished. Last month, foreclosures accounted for 2.7 percent of sales, while short sales made up 7.8 percent.

“It stands to reason that the market would slow down now that the bargains and deeply discounted prices are gone,” association CEO Jim Link said. “I’m optimistic, but I truly believe we’re in a holding pattern, waiting for buyers to accept that they cannot get bargain-basement prices and for sellers to understand there is a clear limit on their asking prices.”

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The condominium market followed a similar pattern.

Last month, condo sales fell 31 percent — to 136 units, from 197 a year earlier — but increased 11.5 percent from 122 in February. The median price rose 16 percent, to $325,000 from $281,000 a year earlier, and up 6 percent from the prior month.